When you’re retiring the last thing on your mind might be risk management. Unlike auto insurance claims that are typically filed very quickly after an accident, E&O claims may not be filed until much later. When your claims-made policy ends, you may not be covered in the event of a lawsuit because there is a reporting limit to your policy. Tail insurance extends this limit to ensure that your retirement is not hindered by a lawsuit.
Tail Policies Protect Your Assets
Tail insurance gives you another two to five years of E&O insurance protection against claims made on your insurance. It does not protect you against current claims. Without tail coverage insurance, you could be liable for all the costs and damages associated with a lawsuit. Risk management has to be a concern even into your retirement years.
Discuss Tail Insurance With Your Insurer
Ask your insurer about tail coverage insurance before you end your E&O policy. You may get a free period of tail insurance on your retirement, but you should know the conditions. You may also want to ask for a longer extension on the tail coverage policy. You’ll have peace of mind knowing that you have covered your bases against lawsuits to prevent unneeded stress in retirement.